Ikea Invades America Case Study Solution

Home >> Youngme Moon >> Ikea Invades America

Ikea Invades America Case Solution

Ikea Invades America Case Study Analysis is a widely known name of a New York based, world's leading company in the food and beverage industry. Case Study Analysis is a leading brand name in convenient snacks, foods and drinks with its presence in about 200 nations. Major brand names of the business include; Pepsi-Cola, Frito-Lay, Tropicana, Quake and Gatorade. The core competitive advantage of the business is its ability to market the item at everywhere places. The company is doing efforts to make item advancement as its brand-new source of competitive advantage.

The report consists of a deep analysis of different elements of the social obligations of major business in the food and beverage market in general, and business in specific. The report likewise supplies an assessment of the level of sustainability and CSR in the Ikea Invades America Case Study Help's business strategy along with the decision of how Case Study Help creates worth for its customers.

Concerns Identification

Case Study Analysis had actually taken certain crucial steps relating to the environmental impacts of its items, but, these steps are not enough to end up the criticism over the business's duty towards social and environmental concerns. This is required to take particular strategic actions to alter the market position of its particular famous brands and present Case Study Analysis as a company producing healthy items in the market. In this regard, company and other food and drink companies must use their power to move the consumer taste towards healthier items to get rid of the constraints in the development of food industry.

Critical Analysis

For the few decades, consumer food patterns have actually been altered drastically. The shift from using healthy food to made food has extremely affected the health of the customers. Despite of the discovery of modern-day health methods, the general health of people in few decades have been extremely impacted. Presently about 1 billion of the people In US are overweight and at least 300 million of them have weight problems. Children likewise dealing with the problem of obesity. The ratios of weight problems in 1980s are quite various from the existing ratios. Despite of discovery of health techniques and modern-day ways to manage obesity and other diseases, the ratio of obesity has actually been doubled form the level of 1980. All of the information associated with the health problems with the incorporation of made food in the market discuss the frequency of the health issues connected to food system. These concerns are indirectly the result of various practices of the food and drink business for producing value for their customers.

Value Production at Ikea Invades America Case Study Analysis

Ikea Invades America Case Study Solution being a huge company in the food and beverage industry, provides high value to its customers by various methods. Case Study Solution has a competitive advantage in offering its products far and large worldwide. The company is provided in about 200 countries with a large number of well-known international brands.

The business develops value for its consumers by ways of offering large number of tasty food items consisting of salt, fat and sugar, which are the components that are directly linked with the emotional core of the customer's brain. The Ikea Invades America Case Study Solution along with other giant food and beverages business produce value for its customers by controling these components in its products. Case Study Analysis together with other huge business is interested in finding methods to increase the customer value from its products through making use of the vulnerability.

In addition to it, the company likewise develops value by ways of incorporating the healthy point in its items. The business has done particular efforts in order to offer healthy items and lower the share of Ikea Invades America Case Study Analysis in total ecological devastation. Case Study Solution has actually taken specific steps related to the sustainability of people and environment consisting of the 2009 announcement of the ambitious goals and dedications associated with Case Study Help items, market and the neighborhood.

All of these methods have actually been effective at creating worth for the Case Study Analysis consumers. Increasing health related issues have raised the criticism for Case Study Solution.

Constructive Role of Significant Food and Beverage Companies in Attending To Social and Ecological Costs Related To the Market

Certainly, major food and beverage companies including company, and so on can play a positive role in resolving social and environmental expenses connected with the market. The environmental costs associated with food and beverage market include the ecological destruction due to the increase of nitrogen which has resulted in the decreased water drinking patterns, river contamination, and increased emission of greenhouse gases from soil etc. All these factors leads to ecological destruction which might be a big hazard to the presence of mankind in future.

Significant reason for these environmental modifications is mass usage of nitrogen abundant fertilizers and the active ingredients by the food and beverage business. Therefore, food and drink business should play a constructive role in resolving these problems to eliminate their development restrictions connected to the criticism from the environmental communities.

In order to resolve these concerns, the business might either lower their use of nitrogen rich active ingredients or take certain actions to minimize the quantity of nitrogen in the total environment. The companies need to prevent use of nitrogen fertilizers and ought to locate the items of those farmers that do not utilize fertilizers for their crop. The companies could likewise invest in decreasing greenhouse gas emissions worldwide. The companies could utilize renewable energy sources at their production plant to compensate the greenhouse gas emissions from the use of nitrogen-rich items.

Together with the environmental costs there are certain social expenses associated with the food and beverage market which need to be resolved by the huge food and beverage companies to achieve the industry development and to avoid the criticism from the environmental neighborhoods. Social costs connected with the industry consists of the increasing health issues connected to weight problems, heart problem, diabetes and so on. The giant business might play a constructive function in dealing with these problems.

The business could move towards more healthy products by reducing the quantity of poisonous compounds in their processed foods i.e. dioxin, which might result in lethal human illness. The companies might also do efforts to move customer tastes towards healthy products as they have actually controlled the customer taste for few decades.

Examination of Sustainability at Ikea Invades America Case Study Solution

There was a potential shift in the corporate method and objectives at Case Study Help. The brand-new CEO was focused on purchasing healthier items for attaining sustainable development for the business together with providing much healthier future for the people and the world both. Under the new vision, the motto of the company was also changed from the "fun for you" to "better for you".

Human Sustainability

The business revealed certain objectives and dedications associated with human sustainability and the environmental sustainability. Ikea Invades America Case Study Solution got Quake Oats producing TrueNorth nut treats and SoBe, and Naked Juice producing soy beverages and organic drinks to introduce different healthier items in its portfolio. Despite of being thought about a Case Study Solution's healthy brand name, the products of Quake Oats contained numerous components which were harmful to health. These hazardous components were not promoted which have ended up being the base for criticism over the healthy brands of Ikea Invades America Case Study Solution.

Together with the inculcation of healthy brands in its portfolio through acquisitions, Ikea Invades America Case Study Help has taken specific sustainability actions for its market places. One of significant examples in this regard is the Company's marketing technique related to schools. The company markets just low calories and nutritious beverages choices in schools.

Another step taken by Case Study Solution towards human sustainability is the shift of its focus towards research study and development for presenting brand-new and healthy items in its portfolio. The business has actually increased its research study and advancement spending plan and has introduced an army of health scientists to design certain healthy products.

Environmental Sustainability

In this regard, the company dedicated to decrease its product packaging by millions of tones to prevent high quantity of wastes. The company has actually committed to reduce greenhouse gas emissions along with the accomplishment of effectiveness in the energy use.

On the basis of above analysis, it might be identified that the company has actually taken numerous actions towards human and environmental sustainability. These actions are still not enough to accomplish the desired commercial development and to lower the criticism over the social responsibility of Case Study Analysis.

Alternatives

Certain long term tactical alternatives could be obtained for the company on the basis of above analysis. These alternatives can be examined on the basis of the reality that how the alternative would make it possible for the company to attain its goal of possible growth and lower the criticism over the company. Furthermore, the alternatives could be examined on the basis of the time frame that would be taken by an alternative to be carried out together with the cost and dangers related to the option

Alternative-1: intro of a New Line of product Related to Healthy Foods and Beverages

The first step that Ikea Invades America Case Study Analysis might take is to present a new product line connected to healthy food and beverages. Although, the business has actually already introduced particular heath associated brand names, however, the variety of these brand names in its portfolio is not possible to minimize the criticism and achieve possible growth. For that reason, the business should present a vast array of much healthier products by utilizing its significant research and advancement expenses. The benefits and drawbacks related to the intro of a healthy product line in the portfolio are offered listed below:

Pros:

• Ability to target large number of consumers i.e. health conscious customers.
• Reduction of the criticism of ecological concerned societies and community advancement companies.
• Satisfaction of the social obligation by settlement of the dangerous products with healthy products.
• Might be executed within couple of years i.e. 3 to 5 years.

Cons:

• Danger of failure of the new products in the market i.e. customers may not like the taste and may not accept the healthier items due to the addicting nature of harmful products.
• The hazardous items in the product portfolio might make the incorporation of healthy products fail to decrease criticism.
• Substantial cost of research study and advancement needed to develop new healthy products.

Alternative-2: High level Acquisition of Health associated Companies

Another alternative choice to attain the possible development and lower the criticism is to acquire the health associated business at a high level. Financial investment in these type of companies would allow Ikea Invades America Case Study Analysis to introduce a big variety of much healthier products within a brief time period without any need of substantial research and advancement expenses. The pros and cons related to alternative 3 are offered below:

Pros:

• Conserving of substantial quantity of research and advancement costs for new item development.
• Incorporation of new items within two years.
• Capability to target a great deal of consumers i.e. health mindful consumers.
• Decrease of the criticism of environmental worried societies and community development companies.
• Fulfillment of the social responsibility by compensation of the hazardous products with healthy products.

Cons:

• The acquisition may not prove to alter the image of Ikea Invades America Case Study Solution as in case of Quaker Oats.
• Requirement of big amount of capital.
• Threat of failure of the brand-new items in the market i.e. customers might not like the taste and may decline the much healthier items due to the addicting nature of dangerous items.
• The hazardous products in the product portfolio might make the incorporation of healthy products fail to decrease criticism.

Aletrnative-3: Replacement of Hazardous Products with Healthy Products in the Portfolio

Another alternative option for Ikea Invades America Case Study Solution is to replace all of its dangerous items with healthier items. The replacement of hazardous products with much healthier products would totally alter the market position of the business and would need a big number of necessary actions to be taken.

Pros:

• Modification of market position of Ikea Invades America Case Study Solution
• Capability to target a great deal of customers i.e. health conscious consumers.
• End of all of the criticism of ecological concerned societies and community advancement companies.
• Fulfillment of the social obligation

Cons:

• Risk of failure of the new items in the market i.e. consumers might not like the taste and might not accept the much healthier items due to the addictive nature of dangerous products.
• Substantial cost of research study and advancement required to build brand-new healthy items.
• Employee might withstand over the modification in business design and company strategy.
• Variety of years needed for the application.
• Shift of focus from the core proficiencies.

Recommendations

With the deep analysis of the company's CSR, problems dealt with by the business and the current market situation, Ikea Invades America Case Study Help is suggested to consider alternative 2 of high level of acquisition of health associated companies. As the acquisitions would make it possible for the company to save of big amount of research study and development costs for brand-new product development. Together with it, acquisitions would permit incorporation of new items within two years along with the ability to target large number of consumers. Moreover, the acquisitions would lead to the decrease of the criticism from the worried organizations.However, the alternative would need huge quantity of investment funds. The companies may not be able to decrease the criticism. With a mindful analysis of the acquisition with an aggressive marketing projects, business might prove to be successful in accomplishing the targets.

This Ikea Invades America case study is writen by : Youngme Moon

Executive Summary	Swot Analysis	Vrio Analysis	Pestel Analysis
Porters Analysis	Recommendations